Alteo Acquires Niche Fused Alumina to Boost Vertical Integration

French aluminium oxide producer Alteo has confirmed the acquisition of white corundum producer Niche Fused Alumina (NFA), a move approved by the commercial court of Chambery. Alteo, which employs 380 people and generates approximately EUR 180 million in revenue, has been a long-standing supplier and partner in research and development (R&D) with NFA.

This acquisition will enable Alteo to vertically integrate operations previously carried out under the Pechiney group, which once controlled both Alteo and NFA. The integration aims to streamline activities and enhance efficiency in production processes.

The corundum sector faces stiff competition from Chinese companies, and Alteo hopes that the European Union will take steps to strengthen protection against dumping practices that threaten local producers. With the merger, the new entity formed by Alteo and NFA aims to expand its product offerings for sectors such as aerospace, electric battery manufacturing, and refractory ceramics, according to Alteo's chairman, Alain Moscatello.

The acquisition will also secure 119 jobs at NFA, which had been under receivership. This job retention is a significant aspect of the merger, providing stability to employees amid challenging industry conditions.